Helios Towers PLC · LSE:HTWS
Helios Towers — Q3 2020 Earnings Presentation
22 slides from Helios Towers's earnings presentation, Oct 29, 2020
Slide 1: Results Q3 2020
Results Q3 2020 29 October 2020
Slide 2: Helios Towers team today
Helios Towers team today Tom Greenwood Kash Pandya Manjit Dhillon Chief Operating Chief Executive Interim Chief Officer Officer Financial Officer Helios Towers plc 1
Slide 3: Agenda
Agenda 1 Highlights 2 Financial Results 3 Q&A Helios Towers plc 2
Slide 4: Highlights
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Slide 5: Q3 2020 highlights
Q3 2020 highlights STRONG REVENUE +6% revenue growth from $97.3m in Q3 19 to $103.6m in Q3 20 GROWTH CONTINUED EBITDA +9% Adj. EBITDA growth from $52.5m in Q3 19 to $57.4m in Q3 20, with record FINANCIAL margin of 55% and within our medium-term target of 55% - 60% EXPANSION… …DRIVING CASH FLOW Portf
Slide 6: Q3 2020: Continued EBITDA growth and cash generation
Q3 2020: Continued EBITDA growth and cash generation Tenancies Adj. EBITDA(1) Portfolio free cash flow(2) • Illustrates the core driver of business • Highlights growth and operational • Measures the unlevered free cash flow growth performance of our business generation of the existing site portfolio
Slide 7: Resilient business model demonstrates minimal impact of COVID-19
Resilient business model demonstrates minimal impact of COVID-19 to both operations and financials Commentary Impact Assessment Change since Q2 20 Workforce & • Field operations and home working • Minimal • None Operations continues • $2.7bn contracted revenues with 6.6 Existing years average contra
Slide 8: Recent Developments
Recent Developments Strengthened Operational excellence Significant progress on financial position in all our markets Senegal 100-day plan On September 9 2020, Helios Delivered another quarter of Following the Senegal acquisition Towers successfully priced an strong power uptime of 99.99% in signing
Slide 9: Sustainable business strategy roadmap
Sustainable business strategy roadmap ✓ Develop core focus of our strategy Contribution against UN Sustainable Development ✓ Develop strategic KPIs and targets Goals 1 Business excellence and efficiency KPIs: Tenancy ratio, adjusted EBITDA margin Targets: Power uptime, BTS lease-up Network acces
Slide 10: Financial results
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Slide 11: Q3 2020: sustained and consistent financial growth
Q3 2020: sustained and consistent financial growth YoY QoQ In US$m, unless YTD YTD % change Q3 20 Q2 20 % change otherwise stated Q3 20 Q3 19 Revenue 308 288 7% 104 102 1% Adj. EBITDA (1) 167 151 10% 57 55 4% LQA Adj. EBITDA (2) 230 210 9% 230 220 4% Adj. EBITDA margin (%) 54% 53% +1ppt 55% 54% +1pp
Slide 12: Q3 20: Steady growth in sites and tenancies
Q3 20: Steady growth in sites and tenancies Evolution of sites portfolio Evolution of tenants Evolution of tenancy ratio +5% +6% +0.03x +2% +1% -0.01x 7,092 7,222 14,906 15,082 6,903 191 14,226 353 385 110 415 172 415 557 193 606 320 606 973 1,788 1,905 1,900 950 970 1,871 3,717 3,944 3,987 1,821 1,
Slide 13: Q3 2020: Continued EBITDA and margin progression
Q3 2020: Continued EBITDA and margin progression Revenue Adj. EBITDA Adj. EBITDA margin +6% +9% +1 ppt +1% +4% +1 ppt 104 55 57 55% 97 102 53 54% 54% Q3 19 Q2 20 Q3 20 Q3 19 Q2 20 Q3 20 Q3 19 Q2 20 Q3 20 • Q3 20 revenue increased 6% YoY to $104m, with growth driven by DRC (+9% YoY). • Adj. EBITDA gr
Slide 14: Consistent and strong currency protection and blue-chip customer base
Consistent and strong currency protection and blue-chip customer base YTD Q3 2020 revenue breakdown by customer YTD Q3 2020 revenue breakdown by FX Other LCY (CPI) 21% 60% 13% hard currency LCY (Power) USD 19% 56% Africa’s Big 5 MNOs(1) 87% XAF/EUR 4% YTD Q3 2020 revenue breakdown by operating compa
Slide 15: Capital expenditure – lower growth capex due to short-term rollout delays
Capital expenditure – lower growth capex due to short-term rollout delays Capex breakdown ($m) Commentary FY 20 capex guidance reduced to $80m - $110m Lower growth capex due to tenancy additions now from previous guidance of $110m - $140m. expected to be c.1,000 vs previous guidance of 1,000 – 1,5
Slide 16: Summary of financial debt
Summary of financial debt Debt KPIs Gross and net leverage 1.0x / -0.2x ($m) FY 19 Q1 20 Q2 20 Q3 20 4.9x Cash & cash equivalents 221 146 213 466 3.9x 3.7x 3.9x 3.1x 3.0x 3.0x 2.9x Less: restricted cash(1) 38 - - - Cash excl. restricted cash 183 146 213 466 Bond 600 600 750 975 Term loan 75 75 - - F
Slide 17: Q3 2020 summary
Q3 2020 summary Maintained track record of consistent and profitable EBITDA growth. Record low cost of debt secured through $225m bond tap, strengthening the balance sheet to support future expansion. Expect c.1,000 incremental tenancy additions for FY 2020, within the previously guided range.
Slide 18: Q&A
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Slide 19: Appendix
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Slide 20: Helios Towers market overview
Helios Towers market overview Big-5 MNOs PoS PoS Growth HT Market Mobile Towers Airtel MTN Orange Tigo Voda Additions(3) CAGR(3) Share(3) Penetration(2) Available(3) (2018 – 2024) (2018 – 2024) Tanzania 64% 41% 2k 5.1k 6.1% DRC 63% 38% 1k 3.8k 9.0% Ghana 21% (1) (1) 55% 0.8k 2.7k 5
Slide 21: Helios Towers $225m bond tap issuance at 5.6% YTM
Helios Towers $225m bond tap issuance at 5.6% YTM Transaction Details On 9th September 2020, successfully raised net proceeds of $234m from a $225m bond tap issuance, reflecting a yield to maturity of 5.61%. Terms are equivalent with existing 2025 notes, with a 7.00% coupon (paid semi-annually) an
Slide 22: Disclaimer
Disclaimer This presentation does not constitute an offering of securities or otherwise constitute an invitation or inducement to any person to underwrite, subscribe for or otherwise acquire or dispose of securities in Helios Towers plc (the "Company") or any other member of the Helios Towers group